Lupin Q2 results preview: Strong earnings growth to be led by new launches in the US, improving domestic sales

livemint.com:

Lupin Ltd that is seeing renewed investor confidence as is reflected in more than 65% rise in share price during the last six months, is also expected to report a strong performance for the quarter ending September led by the new launches in the US markets. In the July to September quarter (Q2FY24), analysts at Motial Oswal Financial Services Ltd.

expect Lupin’s earnings to jump 3 times on year-on-year basis, outperforming the rest of our coverage companies, driven by limited-competition product launch, steady growth in EU, better operating leverage and a lower tax rate. They also have increased their FY24 earnings per share estimates for Lupin by 4% to factor in better market share gains in generics of Spiriva, a drug used to treat chronic obstructive pulmonary disease (COPD).

Also Read- Hindalco share price up about 2% on sequential improvement in volumes and profitability reported by Novelis Q2 result Surya Patra at PhilipCapital Institutional Equity research also expects Launch of limited competition opportunities like- generic Spiriva, generic of Prezista (antiretroviral drug) and Suprep kit under exclusivity along with improving domestic sales leading to a 3-fold jump in earnings The US sales for Lipin are estimated to grow 32% year-on-year to $ 210 million led by new launches in 2QFY24. European Union sales are estimated to grow by 18% YoY led by healthy traction in base portfolio as per MOFSL.

Including launch quantities, analysts at Kotak Institutional Equities build in generic Spiriva sales of $15 million in 2QFY24. They expect Lupin to report $185 million US sales in 2QFY24 ( up 2% sequentially) with contribution from generic of Bowel prep kit Suprep, generic Prezista and greater stability in pricing.